SBI Home Loan For Construction
A construction loan is a short-term loan used to finance the building or renovation of a home or other real estate project. Moreover, a construction loan is typically disbursed in stages as the project progresses.
Regarding construction loans, the SBI Plot and Construction Loan allows customers to purchase a plot to construct their dwelling units. This specialised loan facility supports the acquisition of land and the financing of house construction.
Customers must complete their respective projects within 3 years. House construction loan by SBI offers a maximum loan amount of up to Rs. 15 crores. Moreover, borrowers are provided with a comfortable repayment period of 10 years.
House Construction Loan SBI
|Up to Rs.15 crores
|SBI Home Construction Loan Interest Rate
|Starts at 9.50%
|Up to 10 years
SBI Construction Loan Interest Rates
SBI house building loan interest rates are considered lucrative for the applying customers. Here is a basic snapshot of SBI home construction loan interest rates.
|SBI Construction/Plot Loan
|Starting from 9.50%
SBI Construction Loan - Fees & Charges
With processing fees of 0.35%, where the minimum amount is INR 2000, one can expect a charge of up to INR 10,000. Other than that, there are other miscellaneous charges that applicants will have to pay. They are as discussed below:
|Required for investigation and search report
|Necessary for valuation report
|Stamp Duty Charges
|Apply to the loan agreement
|Covered by the borrower
SBI Construction Loan Eligibility Criteria for Salaried
Following are the eligibility criteria for SBI construction loans for salaried people.
- Eligibility for the SBI Plot Loan requires the applicant to reside in India.
- The age criteria stipulate that applicants must be at least 18 years old and not over 65 years old.
- Additionally, the SBI plot loan offers a maximum loan tenure of 10 years.
SBI Construction Loan Eligibility Criteria for Self-Employed
The applicant, if a proprietor of a proprietorship firm, a partner in a partnership firm, or a director in a company, must ensure the following:
- The business entity should have been operational for a minimum of three years.
- It must have reported net profits in the last two years.
- Any existing credit facilities should be regular and standard, with an opinion report from current bankers.
- In cases where the proprietor and the proprietary firm jointly acquire the house property, the firm should either be an existing borrower of SBI or a debt-free entity.
SBI Construction Loan Documents Required for Salaried & Self-Employed
The table below showcases the documents required for SBI construction loans for both salaried and self-employed.
|Loan Application Form with Photos
|Fully completed form with 3 passport-size photographs
|Proof of Identity (Choose One)
|PAN, Passport, Driver’s License, or Voter ID card
|Proof of Residence/Address (Choose One)
|Recent Telephone/Electricity/Water/Gas Bill or Passport/Driving License/Aadhar Card
|Last 6 months' bank account statements for all applicants; Last year's loan account statement (if applicable) from other banks/lenders
Features of SBI Construction Loans
Following are the features of the SBI construction loan.
- Low Interest Rates: The loans are offered at competitive interest rates, making them an attractive option for borrowers.
- Low Processing Fee: The processing fees for these loans are kept low, reducing the overall cost of acquiring the loan.
- No Hidden Charges: Transparency is ensured with no hidden costs involved in the loan process.
- No Pre-Payment Penalty: Borrowers have the flexibility to prepay their loan without any penalty charges.
- Repayment Tenure up to 10 Years: The loan offers a maximum repayment period of up to 10 years.
- Interest Concession for Women Borrowers: Women borrowers can benefit from a concession on the interest rate, supporting affordability and empowerment.
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- Employee Provident Fund
- Systematic Investment Plan
- Fixed Deposit
- Mutual Funds
- Recurring Deposit
- Systematic Investment Plan (SIP)
- Employees Provident Fund (EPF)
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